Using empty egg card 0% bt offer

appleyard · 27 January 2007 at 1:00PM

Hi

I've got an empty egg card that i was just planning to get rid of. However its my birthday offer month and I can get 0% on balance transfers on it for 5 months.

Should I balance transfer the amount of snowballing that I projected I can afford to pay on to the egg card from my egg flexible loan and pay this off in chunks each month? Making sure that the card is empty by the end of the time?

Here's the figures:

IF loan 8.59% £6k balance but flexible with no early settlement charges, paying £167 per month.
Empty egg card has a limit of £12+K
Amount of overpayment i can afford each month is £244

So should I move over £244 x 5 months from IF loan to Egg card paying 2.5% in balance transfer fee and make sure that i pay it off each month.

On paper it looks like a sensible thing to do. Having looked at our credit record I reckon we could get another 0% card in 5 months time especially if we close this enormous amount of potential debt - a 12k credit card is incredible to me but they gave it to us! Should we do this and then pay it off on to another card as you normally can't transfer loans should i pay more over and risk that we might not get more than a 3k card? i've shut every card we have and just left a 1k card open but unused in case of something truly horrible happening that we just need money for.

what would you do given these figures? Just want to minimise the amount of interest we spend but also not risking leaving lots of money on a 0% credit card that we'll pay for dearly once the card reaches the end of its holiday period.

This kind of thing is so confusing for my little brain! Any help gratefull received.:T

sammiboo · 27 January 2007 at 1:19PM

I have just got 0% on a virgin credit card. The idea is for me to move my barclaycard on there (only £300) and my overdraft (£1200) then pay off amounts each month, so by the time the 0% runs out. it will be paid off.

I am going to ditch the barclaycard anyway!

I suppose if you can get 0% on anything then its better than just paying out interest that isnt coming off the total amount owd.

I also have an egg credit card - they offered me 5.7 % on the life of the balance. So i have stuck with that for now.

SunderlandBlackCat · 27 January 2007 at 2:52PM

appleyard wrote:

what would you do given these figures? Just want to minimise the amount of interest we spend but also not risking leaving lots of money on a 0% credit card that we'll pay for dearly once the card reaches the end of its holiday period.

Given those figures if you overpay your IF loan by that amount you'll owe about £4500 after 5 months & will have paid about £190 in interest.

If you transfer £1190 to Egg + £30 transfer fee you will pay that off in 5 months & with your usual payments to IF will owe them about £4250 & will have paid about £160 in interest+ the £30 transfer fee & of course the lower total owedwill then cost less in interest for the rest of the loan.

I'd say go for it

appleyard · 27 January 2007 at 3:46PM

thanks - if i can get a 0% card in 5 months i can do the same, making sure i dont bite off more than i can chew in case i dont get another card.

many thanks :beer:

sammiboo · 27 January 2007 at 4:56PM

Well i hoping this year my debts will drop somewhat.

I think if you can manage a 0% credit card to your benefit it is well worth having.

I am getting rid of the baclay card as i mentioned above. pay the rest of the off with the 0% . Once the 0% is paid off i will look at what else i owe and cancel that credit card. Apply for another on 0% and possibly move some other debt i know i can pay off before the 0% runs out.

My boyfriend got a credit card with a long term 0% and maxed it out. He put the money in a savings account and once the 0% is up he will pay back the money in full out of his savings account and have the some money left from the interest he got - free money :j

mr_tickle_2 · 27 January 2007 at 9:05PM

appleyard, to optimise your savings, rather than pay the £244 off the Egg card each month, you should pay it into a savings account, to earn some interest on it, then at the end of the 5 months, pay the card off in one lump sum.

Using empty egg card 0% bt offer

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